Manufacturer of flour and maize meal products Unga Group has released full year results for the year ended June 2012 with a decline in post-tax profit to 348.2 million shillings from 441 million shillings earned in 2011. Comparatively, the company’s post-tax earnings rose 88 percent between 2010 and 2011.
Unga Group’s profit decline is despite revenues growing 21 percent to 15.9 billion shillings from 13.2 billion last year. The company’s cost of sales however rose 26 percent to 14.6 billion shillings from last year’s 11.6 billion thus cutting gross profit to 1.4 billion shillings from 1.6 billion earned last year.
Additional cost increases hurt the group’s margins, with distribution and administrative costs rising 31 and 20 percent respectively to 400.1 million and 688.9 million shillings.
Unga Group’s directors have recommended a first and final dividend of KES 0.75 per share payable to shareholders in the company’s register on 5th December 2012 similar to last year’s dividend. Unga Group shares are trailing at the stock market as at 10.20 am today, having dropped 7.92 percent to KES 13.95 from KES 15.15 yesterday on possible selling after fallen company earnings.